Management Accounting Fundamentals: Horizontal Analysis

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Techniques Used in Financial Statement Analysis

This article presents the five (5) general techniques used in the analysis and evaluation of financial statements.

1. Horizontal Analysis
Horizontal analysis involves comparison of figures shown in the financial statements of two or more consecutive periods. The difference of the figures between the two periods is calculated. Using the earlier period as the base, the percentage change is calculated.

Formula (click on the image to zoom):


	MAFundamentals defines the foundation of Management Accounting from cost concept, classification and analysis. It provides general discussion on COST, VOLUME, PROFIT, VARIANCE and other information necessary for performance measurement, decision making and pricing.